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BIIB

US09062X1037

"I am very pleased with the results of the first quarter. We saw continued stability in our MS business, executed a strong launch of SPINRAZA, grew market share for our biosimilars business across Europe, and reinforced the intellectual property for TECFIDERA"

Total revenues of $2.8 billion, a 3% increase versus the prior year
and an 8% increase excluding hemophilia revenues*.

TYSABRI® revenue grew 14% versus the prior year.
Outside the U.S., TYSABRI revenues benefited by approximately $45
million due to reaching an agreement with the Price and
Reimbursement Committee of the Italian National Medicines Agency
(AIFA) related to TYSABRI sales in prior periods.

Versus Q4 2016, Biogen estimates TECFIDERA® U.S.
revenues were negatively impacted by approximately $50 million to
$60 million due to lower inventory levels in the channel.

Worldwide SPINRAZA® revenues were $47 million.

GAAP net income and diluted earnings per share (EPS) attributable to
Biogen Inc. of $748 million and $3.46, respectively.

GAAP net income and diluted EPS were negatively impacted by $263
million and $1.22, net of tax, respectively, related to the
settlement and license agreement with Forward Pharma including
consideration of the U.S. Patent and Trademark Office (USPTO)
ruling in favor of Biogen in the interference proceeding.

Non-GAAP net income and diluted EPS attributable to Biogen Inc. of
$1.1 billion and $5.20, respectively.

* Total Q1 2017 revenues include hemophilia revenues only for the month
of January. The 8% increase in total revenues excludes all hemophilia
revenues from Q1 2016 and January 2017. Hemophilia revenues include
ELOCTATE® and ALPROLIX® product revenues as well
as royalty and contract manufacturing revenue related to Sobi.

A reconciliation of GAAP to Non-GAAP quarterly financial results can be
found in Table 3 at the end of this press release.

“I am very pleased with the results of the first quarter. We saw
continued stability in our MS business, executed a strong launch of
SPINRAZA, grew market share for our biosimilars business across Europe,
and reinforced the intellectual property for TECFIDERA,” said Chief
Executive Officer Michel Vounatsos. “Furthermore, we continued to build
our neurology pipeline with the anticipated addition of our new Phase
2-ready anti-tau antibody.”

“We are encouraged by the progress we made launching SPINRAZA in the
U.S., and, following the positive CHMP opinion, we are ramping up
pre-launch activities in Europe. The value this therapy provides to
patients is compelling, and we are working to accelerate patient access
globally,” Vounatsos continued. “Overall, I believe we’re building
positive momentum at the company, and I look forward to leading Biogen
into a new and exciting era.”

Revenue Highlights

(In millions)

Q1 '17

Q4 '16

Q1 '16

Q1 '17 v. Q4 '16

Q1 '17 v. Q1 '16

Multiple Sclerosis:

TECFIDERA

$

958

$

1,002

$

946

(4

%)

1

%

Total Interferon

$

648

$

688

$

670

(6

%)

(3

%)

AVONEX®

$

537

$

564

$

564

(5

%)

(5

%)

PLEGRIDY®

$

112

$

125

$

106

(10

%)

5

%

TYSABRI

$

545

$

474

$

477

15

%

14

%

FAMPYRATM

$

20

$

22

$

20

(7

%)

1

%

ZINBRYTA®

$

11

$

6

$

—

81

%

NMF

Hemophilia:

ELOCTATE****

$

48

$

149

$

108

(68

%)

(55

%)

ALPROLIX****

$

26

$

93

$

75

(72

%)

(65

%)

Spinal Muscular Atrophy

SPINRAZA

$

47

$

5

$

—

NMF

NMF

Other Product Revenues:

Biosimilars

$

66

$

53

$

2

25

%

NMF

FUMADERMTM

$

10

$

11

$

11

(15

%)

(15

%)

Total Product Revenues:

$

2,380

$

2,503

$

2,309

(5

%)

3

%

Anti-CD20 Revenues

$

341

$

318

$

329

7

%

3

%

Other Revenues****

$

90

$

51

$

88

77

%

2

%

Total Revenues**

$

2,811

$

2,872

$

2,727

(2%)**

3%**

Note: Numbers may not foot due to rounding; percent changes represented
as favorable & (unfavorable)**** Q1 2017 ELOCTATE and ALPROLIX
revenues reflect only the month of January, prior to the spin-off of our
hemophilia business. Other revenues include royalty and contract
manufacturing revenue related to Sobi only for the month of January.

Expense Highlights

(In millions)

Q1 '17

Q4 '16

Q1 '16

Q1 '17 v. Q4 '16

Q1 '17 v. Q1 '16

GAAP cost of sales

$

385

$

378

$

313

(2

%)

(23

%)

Non-GAAP cost of sales

$

385

$

363

$

313

(6

%)

(23

%)

GAAP R&D

$

423

$

534

$

437

21

%

3

%

Non-GAAP R&D

$

421

$

531

$

437

21

%

4

%

GAAP SG&A

$

499

$

496

$

497

(1

%)

(0

%)

Non-GAAP SG&A

$

483

$

484

$

497

0

%

3

%

Note: Percent changes represented as favorable & (unfavorable)

Biogen also recorded GAAP-only pre-tax charges in Q1 2017 of $354
million related to the settlement and license agreement with Forward
Pharma including consideration of the USPTO ruling in favor of Biogen
in the interference proceeding. These charges are included in
amortization of acquired intangible assets and exceed the amounts
anticipated in Biogen’s previously announced 2017 full year GAAP
financial guidance related to this agreement.

Other Financial Highlights

As of March 31, 2017, Biogen had cash, cash equivalents and marketable
securities totaling approximately $5.7 billion, and approximately $6.5
billion in notes payable and other financing arrangements.

For the first quarter of 2017, the Company’s weighted average diluted
shares were approximately 216 million. The Company ended the quarter
with approximately 214 million basic shares outstanding.

During the first quarter of 2017, Biogen repurchased approximately 2
million shares of the Company’s common stock for a total value of $584
million. Since the end of the quarter, the Company has repurchased an
additional approximately 2 million shares for a total value of $543
million.

Business Development Highlights

In April 2017, Biogen announced an agreement with Bristol-Myers Squibb
to exclusively license BMS-986168, an experimental medicine with
potential in Alzheimer’s disease and progressive supranuclear palsy
(PSP), a rare condition that affects movement, speech, vision, and
cognitive function. Biogen plans to initiate Phase 2 studies for
BMS-986168 in both of these indications. Biogen anticipates making an
upfront payment of $300 million to Bristol-Myers Squibb in the second
quarter of 2017 as well as a near-term $60 million milestone payment
to the former stockholders of iPierian, Inc. upon initiation of a
Phase 2 trial for BMS-986168. These amounts exceed the estimated $100
million in business development expense assumed in Biogen’s previously
announced 2017 full year financial guidance. This agreement is subject
to customary closing conditions, including the expiration of the
applicable waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 in the United States, and is expected to
close in the second quarter of 2017.

Other Recent Events

At the 69th annual meeting of the American Academy of
Neurology (AAN) being held in Boston from April 22 to April 28, 2017,
Biogen is presenting data from its portfolio of treatments and
investigational therapies for people with serious neurological and
neurodegenerative diseases. Platform and poster presentations include
new real-world evidence supporting TECFIDERA and TYSABRI, underscoring
the importance of early and appropriate treatment for multiple
sclerosis (MS); new data demonstrating the clinically meaningful
efficacy and favorable benefit-risk profile of SPINRAZA for spinal
muscular atrophy; and previously presented results from the Phase 1b
studies of aducanumab, an investigational treatment for early
Alzheimer’s disease.

In April 2017, Biogen announced that the Committee for Medicinal
Products for Human Use (CHMP) of the European Medicines Agency adopted
a positive opinion recommending the granting of a marketing
authorization in the European Union (EU) for SPINRAZA (nusinersen) to
treat patients with spinal muscular atrophy. The CHMP reviewed
SPINRAZA under an accelerated assessment procedure, which is a
regulatory mechanism to facilitate earlier access to patients for
medicines that fulfill unmet medical needs. SPINRAZA is the first
treatment for spinal muscular atrophy to be recommended by the CHMP
for approval in the EU.

In March 2017, the USPTO ruled against the Coalition for Affordable
Drugs V LLC, an entity associated with a hedge fund, in the inter
partes review of Biogen’s U.S. Patent No. 8,399,514 (the ‘514
patent). The ‘514 patent includes claims covering the treatment of MS
with 480 mg of dimethyl fumarate as provided for in Biogen’s TECFIDERA
label.

In March 2017, the USPTO ruled against Forward Pharma in the
interference proceeding between Forward Pharma’s pending U.S. Patent
Application No. 11/576,871 and the ‘514 patent.

In March 2017, Biogen presented data from its Alzheimer’s and
Parkinson’s disease programs at the 13th International
Conference on Alzheimer’s and Parkinson’s Diseases (AD/PD™) in Vienna,
Austria. The Biogen presentations included data from research of
Alzheimer’s and Parkinson’s disease biomarkers; the investigational
treatment for Alzheimer’s disease, aducanumab; and the investigational
treatment for Parkinson’s disease, BIIB054.

In March 2017, Roche announced that the U.S. Food and Drug
Administration’s (FDA) Oncologic Drugs Advisory Committee (ODAC) voted
unanimously (11 to 0) that the benefit-risk of rituximab/hyaluronidase
for subcutaneous (under the skin) injection was favorable for the
treatment of certain blood cancers. This new co-formulation includes
the same monoclonal antibody as intravenous RITUXAN®
(rituximab) and hyaluronidase, a molecule that helps to deliver
medicine under the skin. The FDA is expected to make a decision on
approval by June 26, 2017. Roche and Biogen collaborate on RITUXAN in
the U.S.

In March 2017, Biogen appointed Anirvan Ghosh, Ph.D. as Senior Vice
President, Research and Early Development (RED). Dr. Ghosh will lead
Biogen’s RED organization in the discovery and development of drug
candidates from idea through proof of concept.

In February 2017, Biogen announced the completion of the separation of
its global hemophilia business. The new company, known as Bioverativ,
is an independent, publicly traded global biotechnology company
focused on hemophilia and other rare blood disorders. Bioverativ
trades under the symbol “BIVV” on the NASDAQ Global Select Market.

In January 2017, Siemens Healthineers and Biogen announced plans to
jointly develop magnetic resonance imaging (MRI) applications with the
intent of quantifying key markers of MS disease activity and
progression.

In January 2017, Biogen initiated a Phase 1 trial of an anti-tau
monoclonal antibody, BIIB076, in healthy volunteers and participants
with Alzheimer’s disease. BIIB076 was derived from Neurimmune’s
reverse translational medicine platform.

Conference Call and WebcastThe Company's earnings
conference call for the first quarter will be broadcast via the internet
at 8:30 a.m. ET on April 25, 2017, and will be accessible through the
Investors section of Biogen’s homepage, www.biogen.com.
Supplemental information in the form of a slide presentation will also
be accessible at the same location on the internet at the time of the
conference call and will be subsequently available on the website for at
least one month.

About BiogenThrough cutting-edge science and medicine,
Biogen discovers, develops and delivers innovative therapies worldwide
for people living with serious neurological and neurodegenerative
diseases. Founded in 1978, Biogen is a pioneer in biotechnology and
today the Company has the leading portfolio of medicines to treat
multiple sclerosis, has introduced the first and only approved treatment
for spinal muscular atrophy, and is at the forefront of neurology
research for conditions including Alzheimer’s disease, Parkinson’s
disease and amyotrophic lateral sclerosis. Biogen also manufactures and
commercializes biosimilars of advanced biologics. For more information,
please visit www.biogen.com.
Follow us on social media - Twitter,
LinkedIn,
Facebook,
YouTube.

Safe HarborThis press release contains forward-looking
statements, including statements relating to: Biogen’s strategy and
plans; potential of our commercial business and pipeline programs;
clinical trials and data readouts and presentations; regulatory filings
and the timing thereof; and anticipated benefits and potential of
investments, collaborations, and business development activities. These
forward-looking statements may be accompanied by such words as
“anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,”
“intend,” “may,” “plan,” “potential,” “possible,” “will” and other words
and terms of similar meaning. You should not place undue reliance on
these statements.

These statements involve risks and uncertainties that could cause actual
results to differ materially from those reflected in such statements,
including: our dependence on sales from our principal products; failure
to compete effectively due to significant product competition in the
markets for our products; difficulties in obtaining and maintaining
adequate coverage, pricing, and reimbursement for our products; risks
associated with current and potential future healthcare reforms; the
occurrence of adverse safety events, restrictions on use with our
products, or product liability claims; failure to protect and enforce
our data, intellectual property, and other proprietary rights and the
risks and uncertainties relating to intellectual property claims and
challenges; uncertainty of long-term success in developing, licensing,
or acquiring other product candidates or additional indications for
existing products; risks associated with clinical trials, including our
ability to adequately manage clinical activities, unexpected concerns
that may arise from additional data or analysis obtained during clinical
trials, regulatory authorities may require additional information or
further studies, or may fail to approve or may delay approval of our
drug candidates; the risk that positive results in a clinical trial may
not be replicated in subsequent or confirmatory trials or success in
early stage clinical trials may not be predictive of results in later
stage or large scale clinical trials or trials in other potential
indications; risks relating to management and key personnel changes,
including attracting and retaining key personnel; problems with our
manufacturing processes; our dependence on collaborators and other third
parties for the development, regulatory approval, and commercialization
of products and other aspects of our business, which are outside of our
control; failure to successfully execute on our growth initiatives;
risks relating to the spin-off of our hemophilia business, including
risks of operational difficulties, exposure to claims and liabilities,
and the ability to achieve some or all of the anticipated benefits;
risks relating to technology failures or breaches; failure to comply
with legal and regulatory requirements; fluctuations in our effective
tax rate; risks related to indebtedness; the risks of doing business
internationally, including currency exchange rate fluctuations; risks
relating to investment in and expansion of manufacturing capacity for
future clinical and commercial requirements; risks related to
commercialization of biosimilars; risks related to investment in
properties; the market, interest, and credit risks associated with our
portfolio of marketable securities; risks relating to stock repurchase
programs; risks relating to access to capital and credit markets;
environmental risks; risks relating to the sale and distribution by
third parties of counterfeit versions of our products; risks relating to
the use of social media for our business; change in control provisions
in certain of our collaboration agreements; and the other risks and
uncertainties that are described in the Risk Factors section of our most
recent annual or quarterly report and in other reports we have filed
with the Securities and Exchange Commission.

These statements are based on our current beliefs and expectations and
speak only as of the date of this press release. We do not undertake any
obligation to publicly update any forward-looking statements.

TABLE 1

BIOGEN INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(Unaudited) (in millions, except per share amounts)

For the Three MonthsEnded March 31,

2017

2016

Revenues:

Product, net

$

2,380.1

$

2,309.4

Revenues from anti-CD20 therapeutic programs

340.6

329.5

Other

90.0

87.9

Total revenues

2,810.7

2,726.8

Cost and expenses:

Cost of sales, excluding amortization of acquired intangible assets

384.6

313.0

Research and development

423.4

437.3

Selling, general and administrative

499.1

497.3

Amortization of acquired intangible assets

448.5

88.8

Collaboration profit (loss) sharing

20.8

—

(Gain) loss on fair value remeasurement of contingent consideration

10.0

2.3

Restructuring charges

—

9.7

Total cost and expenses

1,786.4

1,348.4

Income from operations

1,024.3

1,378.4

Other income (expense), net

(37.6

)

(52.8

)

Income before income tax expense and equity in loss of investee, net
of tax

986.7

1,325.6

Income tax expense

239.2

356.4

Equity in loss of investee, net of tax

—

—

Net income

747.5

969.2

Net income (loss) attributable to noncontrolling interests, net of
tax

(0.1

)

(1.7

)

Net income attributable to Biogen Inc.

$

747.6

$

970.9

Net income per share:

Basic earnings per share attributable to Biogen Inc.

$

3.47

$

4.44

Diluted earnings per share attributable to Biogen Inc.

$

3.46

$

4.43

Weighted-average shares used in calculating:

Basic earnings per share attributable to Biogen Inc.

215.6

218.9

Diluted earnings per share attributable to Biogen Inc.

215.9

219.3

TABLE 2

BIOGEN INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (in millions)

As of March 31,2017

As of December 31,2016

ASSETS

Cash, cash equivalents and marketable securities

$

2,880.2

$

4,895.1

Accounts receivable, net

1,501.5

1,441.6

Inventory

921.6

1,001.6

Other current assets

1,556.4

1,393.9

Total current assets

6,859.7

8,732.2

Marketable securities

2,825.2

2,829.4

Property, plant and equipment, net

2,610.9

2,501.8

Intangible assets, net

4,103.9

3,808.3

Goodwill

3,611.7

3,669.3

Investments and other assets

1,184.5

1,335.8

TOTAL ASSETS

$

21,195.9

$

22,876.8

LIABILITIES AND EQUITY

Current liabilities

2,992.5

3,419.9

Notes payable and other financing arrangements

5,952.7

6,512.7

Other long-term liabilities

783.3

815.6

Equity

11,467.4

12,128.6

TOTAL LIABILITIES AND EQUITY

$

21,195.9

$

22,876.8

TABLE 3

BIOGEN INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION:

NET INCOME ATTRIBUTABLE TO BIOGEN INC. AND DILUTED EARNINGS PER
SHARE

(Unaudited) (in millions, except per share amounts)

An itemized reconciliation between diluted earnings per share on a
GAAP and Non-GAAP basis is as follows:

An itemized reconciliation between net income attributable to Biogen
Inc. on a GAAP and Non-GAAP basis is as follows:

For the Three Months Ended

March 31, 2017

December 31, 2016

March 31, 2016

GAAP net income attributable to Biogen Inc.

$

747.6

$

649.2

$

970.9

Adjustments:

TECFIDERA litigation settlement and license chargesA

—

454.8

—

Amortization of acquired intangible assetsB

448.5

101.6

85.7

(Gain) loss on fair value remeasurement of contingent consideration

10.0

(4.0

)

2.3

(Gain) loss on deconsolidation of variable interest entities

—

(4.4

)

—

Hemophilia business separation costs

19.2

12.6

—

Restructuring, business transformation and other cost saving
initiatives:

—

Restructuring chargesC

—

11.8

9.7

Cambridge manufacturing facility rationalization costsD

—

17.8

—

Income tax effect related to reconciling items

(102.4

)

(146.2

)

(19.2

)

Non-GAAP net income attributable to Biogen Inc.

$

1,122.9

$

1,093.2

$

1,049.4

A In January 2017 we entered into a settlement and license
agreement among Biogen Swiss Manufacturing GmbH, Biogen International
Holding Ltd., Forward Pharma and certain related parties, which was
effective as of February 1, 2017. Pursuant to the agreement, we obtained
U.S. and rest of world licenses to Forward Pharma's intellectual
property, including Forward Pharma's intellectual property related to
TECFIDERA. In exchange, we paid Forward Pharma $1.25 billion in cash.
During the fourth quarter of 2016, we recognized a pre-tax charge of
$454.8 million and in the first quarter of 2017 we recognized an
intangible asset of $795.2 million related to this agreement.

The pre-tax charge recognized in the fourth quarter of 2016 represented
the fair value of our licenses to Forward Pharma’s intellectual property
for the period April 2014, when we started selling TECFIDERA, through
December 31, 2016. The intangible asset represented the fair value of
the U.S. and rest of world licenses to Forward Pharma’s intellectual
property related to TECFIDERA revenues for the period January 2017, the
month in which we entered into the agreement, through December 2020, the
last month before royalty payments could first commence pursuant to the
agreement.

B Amortization of acquired intangible assets for the three
months ended March 31, 2017 includes $353.6 million of impairment and
amortization charges related to the intangible asset associated with our
U.S. and rest of world licenses to Forward Pharma’s intellectual
property related to TECFIDERA, as discussed in Note A above. As we
prevailed in the U.S. proceeding in March 2017, we evaluated the
recoverability of the U.S. asset acquired from Forward Pharma and
recorded an impairment charge to adjust the carrying value of the
acquired U.S. asset to fair value reflecting the impact of the
developments in the U.S. legal dispute over certain TECFIDERA
intellectual property rights. We also continued to amortize the
remaining net book value of the U.S. and rest of world licenses in our
consolidated statements of income utilizing an economic consumption
model.

C Restructuring charges for the three months ended December
31, 2016 and March 31, 2016 include charges of $4.4 million and $9.7
million, respectively, incurred in connection with cost savings measures
primarily intended to realign our organizational structure in
anticipation of the changes in roles and workforce resulting from our
decision to spin-off our hemophilia business, and to achieve further
targeted cost reductions. Restructuring charges for the three months
ended December 31, 2016, also include severance charges of $7.4 million
related to employee separation costs as a result of our decision to
vacate and cease manufacturing in Cambridge, MA and vacate our warehouse
in Somerville, MA.

D Cambridge manufacturing facility rationalization costs
reflect additional depreciation, the write-down of excess inventory and
other direct costs associated with our decision to vacate and cease
manufacturing in Cambridge, MA and vacate our warehouse in Somerville,
MA. Additional depreciation expense, which totaled $14.0 million for the
three months ended December 31, 2016, is included in cost of sales,
excluding amortization of acquired intangible assets in our condensed
consolidated statements of income. Also reflected in this amount for the
three months ended December 31, 2016 are charges of $1.4 million for the
write-down of excess inventory, which are included in cost of sales,
excluding amortization of acquired intangible assets in our condensed
consolidated statements of income.

Use of Non-GAAP Financial Measures

We supplement our consolidated financial statements presented on a GAAP
basis by providing additional measures which may be considered
“Non-GAAP” financial measures under applicable SEC rules. We believe
that the disclosure of these Non-GAAP financial measures provides
additional insight into the ongoing economics of our business and
reflects how we manage our business internally, set operational goals
and forms the basis of our management incentive programs. These Non-GAAP
financial measures are not in accordance with generally accepted
accounting principles in the United States and should not be viewed in
isolation or as a substitute for reported, or GAAP, net income
attributable to Biogen Inc. and diluted earnings per share.

Our “Non-GAAP net income attributable to Biogen Inc.” and “Non-GAAP
earnings per share - Diluted” financial measures exclude the following
items from "GAAP net income attributable to Biogen Inc." and "GAAP
earnings per share - Diluted":

1. Purchase accounting and merger-related
adjustmentsWe exclude certain purchase accounting related
items associated with the acquisition of businesses, assets and amounts
in relation to the consolidation or deconsolidation of variable interest
entities for which we are the primary beneficiary. These adjustments
include, but are not limited to, charges for in-process research and
development, the amortization of certain acquired intangible assets, and
charges or credits from the fair value remeasurement of our contingent
consideration obligations.

2. Hemophilia business separation costsWe
have excluded costs that are directly associated with the set up and
spin-off of our hemophilia business into an independent, publicly-traded
company. These costs represent incremental third party costs
attributable solely to hemophilia separation and set up activities.

3. Restructuring, business transformation and
other cost saving initiativesWe exclude costs associated
with the company’s execution of certain strategies and initiatives to
streamline operations, achieve targeted cost reductions, rationalize
manufacturing facilities or refocus R&D activities. These costs may
include employee separation costs, retention bonuses, facility closing
and exit costs, asset impairment charges or additional depreciation when
the expected useful life of certain assets have been shortened due to
changes in anticipated usage, and other costs or credits that management
believes do not have a direct correlation to our on-going or future
business operations.

4. Other itemsWe evaluate other items
of income and expense on an individual basis, and consider both the
quantitative and qualitative aspects of the item, including (i) its size
and nature, (ii) whether or not it relates to our ongoing business
operations, and (iii) whether or not we expect it to occur as part of
our normal business on a regular basis, including in the fourth quarter
of 2016, TECFIDERA litigation settlement and license charges. We also
include an adjustment to reflect the related tax effect of all
reconciling items within our reconciliation of our GAAP to Non-GAAP net
income attributable to Biogen Inc.